Value-relevant properties of smoothed earnings


Grant Data
Project Title
Value-relevant properties of smoothed earnings
Principal Investigator
Dr Zhang, Huai   (Principal investigator)
Co-Investigator(s)
Professor Thomas Jacob   (Co-Investigator)
Duration
30
Start Date
2004-09-01
Completion Date
2007-02-28
Amount
376320
Conference Title
Presentation Title
Keywords
earnings, Value-relevant properties
Discipline
Business and Management Studies (including Accounting) (Obsolete)
Sponsor
RGC General Research Fund (GRF)
HKU Project Code
HKU 7244/04H
Grant Type
General Research Fund (GRF)
Funding Year
2004/2005
Status
Completed
Objectives
To add to the available evidence on value-relevant properties of smoothed earnings. While both empirical and theoretical research have explored other reasons why firms might smooth reported earnings, the valuation effects of earnings smoothing are potentially the most important. Somewhat paradoxically, these valuation effects are hard to document, primarily because earnings smoothing is not easily measured, and theories have been offered to explain why in equilibrium firms smooth earnings to different extents.